If you have followed us on this platform, each time we talked about financing a startup, you will agree that we have always mentioned Loans as an option for financing your business ideas and goals. Although its not the best solution to financing your business, its worth trying out as a last resort. Now, if you must take a loan, you should have a good idea on the terms to use while seeking these loans.
Here, we will discuss working tips, which you can adopt when you want to Negotiate a Business Loan for your startup or any Business.
You must understand the intricate language used by Lenders to confuse their Borrows and get the deal working for them.
Their are no shortcuts to this, because a bad deal will hunt you down.
We have outlined three standard ways or tips you can employ when you want to negotiate business loans for startups. It is our belief that you won’t get it wrong. Let us get to it.
Outlined below are 3 standard ways you can use to negotiate business loans for your startup or any business at all.
Before you proceed, have you heard of Euptions Nig Ltd? They offer financial advise and also have plans that help you succeed in your business. You can contact them on this e-mail firstname.lastname@example.org
located in the City of Abuja, Nigeria.
so, here we go with the 3 working tips that will fetch you than Loan Finance.
Did you know that some Banks prefer to give Loans to some Businesses? The type of business you are hoping to set up will determine the bank or financial institution you visit. Assuming you want to startup a school, FirstBank of Nigeria, through their First-Edu Loan will happily give you the required amount you need, after the feasibility study has been carried out by the bank. Access bank will give you the cash to finance your Agric Business, etc.
According to FDIC, most banks have businesses they have agreed to finance, according to trend. etc.
SEE ALSO, lending Platforms in Nigeria
According to Paola Garcia,
“Speaking the same language as your lender demonstrates that you understand the process and your responsibilities, increasing your lender’s confidence in you. This can also help you spot warning signs that a potential lender may not have the experience you need or may demonstrate predatory lending behaviors – either of which can result in a loan that’s poorly structured, with repayment terms that jeopardize your business’s cash flow.”
For every business their is a business language, conduct deep research in your proposed business idea, talk to your lender like a professional. Not as a high school leaver, who wants to have fun with money.
some terms to take to heart are Balloon payment, financial covenants, loan-to-loan-ratio, personal guarantee, interest and default.
It is a world of possibilities, things always go in any two ways; either up or down. Whether your application is turned up or down, dress cute, look polished. Go with the requisite paper work, your financial report, tax returns etc.
Have copies of about 6 months of your bank statement, recent brokers and any trust information.
If you prepare well, be sure to expect a good reception from any bank you settle to visit.
Be True to all information you will present, that’s the first step to winning.